It seems that you do not have to look too hard these days to see some form of advert or enticement trying to tempt you to exchange the equity in your home for a home equity loan. Last year, this segment of the loans market grew by a massive 33%, this does not even account for hyper growth experienced in bad credit home equity loans market, which is thought to be double that figure.

The glossy posters, the adverts complete with smiling and happy people always seem to be selling on the same point, any purpose (read fulfil your dreams) loans, you want a sporty car loan? Holidays of a lifetime, a new holiday home with swimming pool etc?

The loan market is actively encouraging people to take a loan out and start to enjoy their lives, take those trips of a lifetime, and buy a boat or whatever. In principle, there is nothing wrong with this, home owners are responsible adults and it is still quite hard to make a person apply for a loan against their wishes, so what is the problem?

There is no real problem; it's good t

hat people enjoy themselves. If someone has worked all of their life and wishes to take some time out, then that is absolutely their prerogative. What I'd like to see is less reliance on home equity loans to obtain this lifestyle, we are still going to get old, and we'll still need somewhere to live. Once people retire, they will not be bringing money into their house at the same rate as before; this usually resulted in people downsizing and using the equity in their home to live out their retirement, plus pension. In future years, this will no longer be the case.

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